China rejects EU trade complaint over raw material export measures

US Trade Representative Michael Froman has said China's duties imposed higher costs on U.S. manufacturers of the materials, used in aerospace, autos, electronics and chemicals, while Chinese competitors did not have to pay the costs, encouraging companies to locate production in China.Reuters | July 19, 2016, 17:14 IST

BEIJING: China rejected on Tuesday a European Union challenge to export tariffs and quotas on 11 metals and minerals at the World Trade Organization (WTO), arguing the measures are in line with WTO rules.

The EU complaint follows a similar step by the United States last week, in which it argued that China's policies violated its WTO commitments and gave an unfair advantage to its manufacturers.

China's Commerce Ministry said in a statement it had received the EU complaint concerning the raw materials, such as copper, lead and tin, but that its policies were intended to protect the environment.

"China's relevant export tariffs and export quotas, and related management measures are based on resource and environmental protection needs, are a part of comprehensive measures to strengthen environmental protection, and accord with WTO rules," the ministry said.

"China regrets the EU request for consultations and will appropriately handle it according to WTO dispute resolution procedures," the ministry said in the statement posted online.

The ministry said chromium, cobalt, indium, antimony, magnesium, talc, graphite and tantalum were also among the 11 raw materials in the EU complaint, but did not give further details.

US Trade Representative Michael Froman has said China's duties imposed higher costs on U.S. manufacturers of the materials, used in aerospace, autos, electronics and chemicals, while Chinese competitors did not have to pay the costs, encouraging companies to locate production in China.